SWEDEN: Retailer ICA books H1 earnings rise
- H1 profits up
- Sales increase
- Revenue in Sweden and Baltic higher, Norway under pressure
Sweden-based retailer ICA, in which Dutch retail giant Ahold owns a majority stake, has reported higher half-year profits.
ICA, which has stores in Sweden, Norway and in the Baltic, booked net income of SEK776m (US$117.2m), up from SEK686m a year earlier.
Operating income, excluding costs linked to the restructuring of ICA's business in Norway, increased 21.9% to SEK1.5bn.
Net sales rose 3.9% to SEK48.07bn, with ICA seeing sales increase in Sweden and from its Rimi Baltic arm.
However, sales in Norway fell. ICA is now focusing on its Rimi and ICA Supermarked stores in the country.
ICA Group’s interim report for the second quarter 2012
Solna, Sweden, 22 August, 2012
Continued positive development for the ICA Group
Net sales for the second quarter amounted to SEK 24,758 million (24,365), up 1.6 percent. At constant exchange rates net sales increased by 1.3 percent.
Operating income excluding non-recurring items in Norway of SEK -194 million amounted to SEK 816 million (738), up 10.6 percent.
Income after net financial items amounted to SEK 546 million (646).
Net income for the second quarter amounted to SEK 338 million (432).
Net sales for the first half-year amounted to SEK 48,067 million (46,250), up 3.9 percent. At constant exchange rates net sales increased by 3.4 percent.
Operating income excluding non-recurring items in Norway of SEK -194 million amounted to SEK 1,497 million (1,228), up 21.9 percent.
Income after net financial items amounted to SEK 1,161 million (1,068).
Net income for the first half-year amounted to SEK 776 million (686).
Extract from CEO comment – Per Strömberg, CEO ICA AB:
“The ICA Group continued its positive development during the second quarter 2012. Net sales at constant exchange rates rose by 1.3 percent, mainly due to sales increases by ICA Sweden, Rimi Baltic and ICA Bank. Operating income before non-recurring items in Norway amounted to SEK 816 million, up slightly over 10 percent compared to the same period last year. The net effect of the non-recurring items deriving from the divestment of ICA Maxi in Norway amounted to SEK -135 million. In addition, we decided to take a provision relating to administrative efficiencies in ICA Norway, which further impacted the result with SEK -59 million. During the quarter, Group Management continued to define the future strategic direction for the ICA Group and work proceeded as planned.”
Click here for the full statement.
Original source: ICA.se
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